Treasurys Swing Higher
Following Fed Rate Cut

By

John Parry Dow Jones Newswires

Updated March 21, 2001 12:01 a.m. ET

NEW YORK -- Treasury prices rallied after stock prices dropped on disappointment over the extent of Federal Reserve easing.

Traders said the Treasury market already had factored in Tuesday's Fed rate cuts -- half a percentage point in the federal-funds, or overnight bank lending, rate, and in the discount rate, or what the Fed charges member banks for loans.

The bigger question for the bond market, they added, was how stocks...